Campbell Resources Reports First Quarter Results.TORONTO--(BUSINESS WIRE)--May 11, 1999-- Campbell Resources I(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CCH CCH Colegio de Ciencias y Humanidades (Spanish) CCH Certified Clinical Hypnotherapist CCH Cook County Hospital CCH Certified in Classical Homeopathy CCH Country Club Hills (Fairfax City, VA, USA) .) (ME:CCH.) (NYSE NYSE See: New York Stock Exchange :CCH) Overview For the three months ended March 31, 1999, Campbell reported a loss of $3 million or $0.02 per share compared to a loss of $1.7 million or $0.01 per share for the same period of 1998. Working March 31, 1999 was $42.4 million million and cash of $41.5 million at December 31, 1998. There was negative cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses before changes in operating working capital of $2.4 million in the quarter compared to cash flow of $nil in the first quarter of 1998. The increased loss is primarily the result of lower gold production and lower realized gold prices for the first quarter of 1999. Gold production decreased by 34 percent to 15,900 ounces in the first quarter of 1999 from 24,200 ounces a year earlier. Cash operating cost for the first quarter increased to US$301 per ounce compared to US$261 during the first three months of 1998. The lower production and higher cash operating cost reflects the completion of leaching leaching, method of extraction in which a solvent is passed through a mixture to remove some desired substance from it. A simple example is the passage of boiling water through ground coffee to dissolve and carry out the chemicals necessary for producing the beverage. operations in December, 1998 at Santa Gertrudis Santa Gertrudis Heaviest breed of beef cattle, developed in the 20th century by the King Ranch in Texas by crossing Brahman bulls with shorthorn cows. It is usually solid red with occasional small white markings on the forehead or the flanks. Mine in Sonora, Mexico and budgeted lower first quarter production at the Joe Mann Mine. Planned lower gold production and a 3 percent decrease in the realized gold price resulted in Campbell reporting revenues from metal sales of $6.6 million, compared with $10.3 million in the same period of 1998. The average Comex market price of gold was US$287 per ounce in the first three months of 1999 compared to US$297 per ounce in 1998. Joe Mann Mine, Quebec, Canada The Joe Mann Mine produced a total of 15,300 ounces of gold in the first quarter of 1999 compared to 18,200 ounces in the same period of the previous year. The tons milled decreased to 69,300 tons from 76,300 tons in 1998 while the mill head grade decreased to 0.239 ounces per ton from 0.258 ounces per ton in 1998. As a result of the lower gold production, the cash operating cost increased to US$301 per ounce for the first three months of 1999 compared to US$290 per ounce for the comparable period in 1998. The Joe Mann Mine achieved the Company's internal targets for the first quarter in terms of gold production and cash cost. Gold production is expected to increase during the second half of 1999 as production from newly developed stopes Stopes , Marie Carmichael 1880-1958. British social reformer who opened England's first birth control clinic (1924) in London and later promoted family planning in east Asia. below the 2350 level and the New Ore Zone on the 2575 level begins. During the latter part of March and all of April the mine experienced some unexpected dilution in the upper portions of certain shrinkage Shrinkage The amount by which inventory on hand is shorter than the amount of inventory recorded. Notes: The missing inventory could be due to theft, damage, or book keeping errors. stopes. As a result the Company is anticipating increased costs and decreased production from those originally budgeted for the second quarter. The Company has rectified rectified refined; made straight. the dilution problem, but has reduced its 1999 gold production estimate for the Joe Mann Mine to approximately 75,000 ounces from the previously forecast 78,000 ounces and increased its estimated cash cost to US$260 per ounce from US$250 per ounce. Diamond drilling Diamond Drilling is a highly specialized industry used for mineral exploration around the world. Most commonly using wireline and core bits with diamond encrusted matrix. To drill holes to max depths of twelve thousand feet, for the recovery of core used in verifying mineral from the 2575 level and the 2750 level is continuing in an effort to delineate the New Ore Zone, the discovery of which was announced in a press release dated February 4, 1999. Results from 5 holes completed below the 2575 level indicate the North and South limbs, which make up the New Ore Zone, converge con·verge v. con·verged, con·verg·ing, con·verg·es v.intr. 1. a. To tend toward or approach an intersecting point: lines that converge. b. some 30 feet below the level. This suggests that mining in this specific area would be at typical mine widths of 6 feet with ore grades Ore grade is a measure that describes the concentration of a valuable natural material (such as metals or minerals) in its surrounding ore. Ore grade is used to assess the economic feasibility of a mining operation: the cost of extracting a natural material from its ore is directly of one quarter ounce. However, this pinching and swelling swelling /swell·ing/ (swel´ing) 1. transient abnormal enlargement of a body part or area not due to cell proliferation. 2. an eminence, or elevation. form of the mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. is common in underground mines and previously completed deep drilling suggests further swelling of the New Ore Zone occurs at depth as indicated in the table below: -------------------------------------------------- Projected Level Section Interval Assay Elevation (feet) (oz./t gold) -------------------------------------------------- 2925 Level 1200E 43.0 0.235 3450 Level 1500E 46.1 0.369 3450 Level 3000E 45.3 0.283 -------------------------------------------------- Confirmation of the grade and thickness of these drill intersections at these projected lower levels will be possible once development is completed. Santa Gertrudis Mine, Sonora, Mexico As previously announced, mining operations at Santa Gertrudis were suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. in December of 1997 and the mine infrastructure was placed on care and maintenance. The Company reports that its application for a resolution granting temporary occupation on the San Enrique San Enrique is the name of two places in the Philippines:
The San Enrique geochemical anomaly, situated approximately 8 kilometres south of the Santa Gertrudis mine area, was delineated de·lin·e·ate tr.v. de·lin·e·at·ed, de·lin·e·at·ing, de·lin·e·ates 1. To draw or trace the outline of; sketch out. 2. To represent pictorially; depict. 3. in the fall of 1998 as a result of an ongoing property-wide regional soil geochemical program. The anomaly has a north-south strike length of 4 kilometres and is up to 2 kilometres wide. The core of this anomaly is 750 metres in length and has returned values from soil samples between 0.1 and 2.49 g/t gold. In addition, there are three other highly anomalous a·nom·a·lous adj. 1. Deviating from the normal or common order, form, or rule. 2. Equivocal, as in classification or nature. zones within the anomaly that will be thoroughly investigated. To date, soil sampling has returned values of up to 10 g/t gold while assay values from bedrock exposures have returned widespread economic gold values ranging up to 78 g/t gold. Efforts are continuing with the Trustee in Bankruptcy trustee in bankruptcy n. a person appointed by a bankruptcy court to supervise the affairs of person or business which is in bankruptcy, determine both assets and debts, marshal (gather) and manage the assets if necessary, and report to the court. to close the previously announced acquisition of the former gold producing property of Minera Roca Roja, which filed for bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most in the third quarter of 1998. The property, which consists of 4,568 hectares, has the potential to host mineralized min·er·al·ize v. min·er·al·ized, min·er·al·iz·ing, min·er·al·iz·es v.tr. 1. To convert to a mineral substance; petrify. 2. To transform a metal into a mineral by oxidation. 3. material which could be developed in the near term given its proximity to the Company's existing mine infrastructure. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : Certain information contained in this release contains "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 and is subject to certain risks and uncertainties, including those "Risk Factors" set forth in the Company's current Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 1998. Such factors include, but are not limited to: differences between estimated and actual ore reserves; changes to exploration, development and mining plans due to prudent reaction of management to ongoing exploration results, engineering and financial concerns; and fluctuations in the gold price which affect the profitability and ore reserves of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . The Company undertakes no obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof or to reflect unanticipated events or developments Campbell Resources is a growth-oriented gold mining company with operations in Quebec, Canada and Sonora, Mexico, and a development-stage gold project in Panama awaiting higher gold prices in order to continue development. The Company is currently exploring on its mine properties in Quebec and Mexico and is actively seeking additional acquisitions.
Campbell Resources Inc.
(Incorporated under the laws of Canada)
UNAUDITED CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of Canadian dollars)
March 31 December 31
1999 1998
--------------------------
ASSETS
CURRENT ASSETS
Cash and short-term deposits $40,375 $41,493
Receivables 1,863 2,653
Inventories 4,214 4,538
Prepaids 400 474
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Total current assets 46,852 49,158
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OTHER ASSETS 462 502
MINING INTERESTS 174,558 173,866
Less accumulated depreciation
and amortization (122,052) (120,749)
--------------------------
52,506 53,117
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Total assets $99,820 $102,777
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $2,657 $2,254
Accrued liabilities 1,816 1,215
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Total current liabilities 4,473 3,469
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RECLAMATION AND OTHER LIABILITIES 2,273 2,571
CONVERTIBLE DEBENTURES 4,970 5,652
DEFERRED MINING TAXES 3,262 3,616
SHAREHOLDERS' EQUITY
Capital stock 124,220 123,632
Foreign currency translation
adjustment 1,227 1,394
Deficit (40,605) (37,557)
--------------------------
Total shareholders' equity 84,842 87,469
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Total liabilities and
shareholders' equity $99,820 $102,777
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UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in thousands of Canadian dollars except per share amounts)
Three months ended
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March 31
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1999 1998
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METAL SALES $6,601 $10,281
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EXPENSES
Mining 7,808 9,524
General administration 769 695
Depreciation and amortization 1,389 1,621
Exploration 336 592
Care and maintenance 238
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10,540 12,432
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Loss from operations (3,939) (2,151)
Other income (expense)
Interest and other income 770 455
Foreign exchange gain 2 5
Convertible debenture interest
expense (107) (146)
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665 314
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Loss before income taxes (3,274) (1,837)
Income and mining tax (recovery) (226) (107)
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NET LOSS ($3,048) ($1,730)
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LOSS PER SHARE ($0.02) ($0.01)
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